According to Kotler, "A company must identify the parts of the market that itcan serve best and most profitably".The computer market has various products which can basically be classifie
Bài tập cá nhân Marketing Management - CONTENT I.INTRODUCTION: Under the pressure of globalization, the stormy development of technology and the opening of new markets, the world economy has changed dramatically in the past decade Globalization is a business development opportunities that the big economics organizations in the world can not be ignored, because they have the advantage of the resources and play rules of the predecessors Beside, the development of technology , especially information technology, has removed all barriers of space and geography Customers now have more rights than ever before Thanks to the technology they have access to information about products better, so they have many more choices Technology has also helped to shorten the time that an idea needs to have for becoming a ready serves customers' product Many years ago, automakers companies could only come up with one new model each year Today they can introduce to the market 5.6 new models in a year On the other hand , technology has also posed a challenge for businesses : the life of the product on the market is shortened Previously, people used a mobile phone in 2-3 years time is normal , then for today's youth , if after a year you do not change the cell phone , it is abnormal Globalization has also changed the nature of business activities, instead of concentrating produce the best products, the cheapest possible, businesses have shifted their attention to the market In order to attract more customers, the enterprises need to understand customer demands better, they need better communication about their products, and they need to build a long term relationship between brands with audiences target Because of these reasons, marketing becomes an increasingly important function in the business After the industrial revolution of the nineteenth century, the science of marketing was born and became an indispensable tool of business Studying marketing management and applying the knowledge of this interesting subject is an indispensable duty of every enterprise That's the key features to exist and develop of enterprises 1 On the purpose of this paper, I would like to focus on five contents of marketing included: First, the definitions of marketing; second, explain market segmentation with suitable examples; third, justify the statement "PLC as a tool for marketing strategy"; fourth, Elucidate the topic “Advertising forces people to buy goods that they do not want" ; finally, Explain the process of integrated Marketing communication What will be presented here is a combination of what I learnt, read and experienced II BODY 1 Explain the following: (a) Production concept (b) Product line (c) Augmented product (d) Social marketing concept (Source: Kotler, Philip (2000) Marketing Management Upper Saddle River, New Jersey: Prentice Hall) a Production concept: This concept is the oldest of the concepts in business It holds that consumers will prefer products that are widely available and inexpensive Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution They assume that consumers are primarily interested in product availability and low prices This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.The production concept believes that the consumer will favour products that are readily available at reasonable prices Improvement in production and distribution effiency will be the focus area for managements under this concept The most understandable example for this concept is the case of Ford Motor Company (also known as simply Ford) Ford Motor Company is an American multinational automaker which adopt production concept When Ford came out with its car model T, Henry Ford believed that if cost is reduced more people would buy it Ford did not have any concern about customer's preferences and joked that the customer can have any colour for the car, privided it was black The production concept though useful in some situations , can result in “marketing myopia” according to the Theodore Companies following this concept focus too narrowly on their own activities and lose sight of the real objective of customer’s need satisfaction But with the continuous industrialization and more and more players entered into the market, too many people were selling the same product Production concept to 2 Customization concept where each and every product is manufactured and delivered according the tastes and choices of the customer Take, for example: Dell is one of the world's largest computer systems companies which is globally known for building personal computers, enterprise products like servers as well as storages and IT solutions which are customized per order to match the customer's needs.The formula of segmentation is the base for strategic marketing Companies realize that they cannot appeal to all customers but have to identify the customers they are able to serve best and profitably According to Kotler, "A company must identify the parts of the market that it can serve best and most profitably" The computer market has various products which can basically be classified into software and hardware categories where each are sub-divided into various product segments It is clear that Dell is focused on the computer hardware market where it started with the desktop personal computer as its initial product segment Further product segments such as notebooks, servers and computer peripherals have been added to its marketing mix as revenue increased In addition, Dell has partnered with major corporations such as Microsoft to ensure their products are equipped with the latest software as per customers' needs Dell mainly uses customer segmentation in its market strategy along with the product segmentation where it is targeting several market segments and designing separate products or offers for them On one hand, geographically, Dell has segmented the market into the US/ Americas, EMEA and Asia Pacific-Japan where each area has different pricing and marketing strategies On the other hand, demographically, there is no age, gender or race bias but income, occupation and education play a role in deciding the customer needs and hence the product offer b.The product line: According to the oxforddictionaries, it is “An arrangement in a factory in which a thing being manufactured is passed through a set linear sequence of mechanical or manual operations” (http://www.oxforddictionaries.com/definition/english/production-line) A production line is the traditional method which people associate with manufacturing The production line is arranged so that the product is moved sequentially along the line and stops at work centers along the line where an operation is performed The item may move along 3 some kind of conveyor, or be moved manually by staff or forklift For example, operations along the production line could include assembly, painting, drying, testing, and packaging If needed some parts can be removed from the production line and stored as semi-finished goods The production line manufacturing process is very suited to high volume manufacturing of a single product or product group For example, a production line may be used to manufacture a range of vacuum cleaners, where the only difference between the models is the color of the plastic assembly and the attachments that are included in the final product The production line is a series of the same products about the structure, function, shape, and characteristic that can be readily identified Example: There are a lot of Iphone’s categories, in every term Apple produces its own a certain product lines such as Iphone 3, Iphone 4, Iphone 4S, … c Augmented product: (http://www.learnmarketing.net/threelevelsofaproduct.htm) According to Philip Kotler, who is an economist and a marketing guru, a product is more than a tangible ‘thing’ A product meets the needs of a consumer and in addition to a tangible value this product also has an abstract value In order to shape this abstract value, Kotler uses five levels (included: Core benefit of the product, Generic Product, Expected Product, Augmented Product and Potetial product) in which a product is located or seen from the perception of the consumer These levels indicate the value that consumers attach to a product The customer will only be satisfied when the specified value is identical or higher than the expected value Augmented Product refers to all additional factors which sets the product apart from that of the competition And this particularly involves brand identity and image Is that warm coat in style, its colour trendy and made by a well-known fashion brand? But also factors like service, warranty and good value for money play a major role in this For example: Apple's iPhone design has enabled it to become a smart phone market leader It is and Example for augmented product, one of Apple’s customer said: “ I’ll be buying the iPhone 5 regardless of its physical features Why? Because Apple’s augmented product is so much 4 more than physical features And the company has already delivered where it matters most: the social and emotional components of the phone” d Social marketing concept: Societal Marketing is basically a marketing concept that is of the view that a company must make good marketing decisions after considering consumer wants, the requirements of the company and most of all the long term interests of the society Societal Marketing is actually an offshoot of the concept of Corporate Social Responsibility and sustainable development This concept urges companies to do more than having an exchange relationship with customers, to go beyond delivering products and work for the benefit of the consumers and the society Following is an example of Societal Marketing Concept: Body Shop is a cosmetic company found by Anita Roddick The company uses only vegetable based materials for its products It is also against Animal testing, supports community trade, activate Self Esteem, Defend Human Rights, and overall protection of the planet Thus it is completely following the concept of Societal Marketing 2 Explain Market Segmentation with suitable examples Market segmentation is an integral part of a company's marketing strategy It is the process of breaking down a larger target market into smaller, more homogeneous groups of customers that you can more efficiently market to Both consumer-oriented and business-oriented companies should segment customers using one of several below approaches: Demographics Demographic market segmentation is one of the most common approaches to segmenting markets With this strategy, a company simply divides the larger market into groups based on several defined traits Age, race, gender, marital status, occupation, education and income are among the commonly considered demographics segmentation traits As a simple example of usage, a company that sells feminine hygiene products will include "female" in its description of its primary market segment Geographic Geographic segmentation is used by companies that sell products or service specific to a certain community, state, region, country or group of countries Local businesses usually get no benefit in paying for national or international advertising Companies that operate 5 nationally can often save by delivering the same marketing messages to a national audience through one television, radio, magazine or newspaper ad Global businesses typically decide whether to maintain a universal message or tailor messages to each country's marketplace Psychographics Psychographics or lifestyle segmentation has become increasingly common as companies look to identify consumers based on interests and activities in lieu of demographics As an example of this strategy's benefits, consider the lifestyle of an outdoor adventurer Camping enthusiasts, for instance, typically have few consistent demographic traits Campers are a diverse group Thus, marketers would likely target a segment of outdoor hobbyists or campers for new camping equipment through outdoor programs or magazines Behavioral Behavioral segmentation is based on user behaviors, including patterns of use, price sensitivity, brand loyalty and benefits sought A company may have customers with a similar demographic makeup but distinct behavioral tendencies Some may use the product daily, while others use it weekly or monthly Higher-income earners may have more interest in higher-quality models versus low-cost models This may prompt the provider to target higher-end products and services to one group and more value-oriented offerings to lower- income or budget-conscious customers Business Segmentation Segmenting for business customers often has overlap but commonly includes geographic, customer type and behavior-based strategies Geographic business segmentation is similar to that with consumer segmenting Customer type segmenting may include business size or the nature of the business Banks, for instance, often have different products for small versus large businesses Behavioral segmenting is based on repeat or loyal customers versus one- time users 3 Justify the statement:“PLC as a tool for marketing strategy” (source:http://www.slideshare.net/Sanzux/plc-strategies-30368392) 6 Everyday, we're regularly bombarded by advertisements which telling us about exciting new features of existing products; a brand of milk with a new, improved formula; or a yoghurt that now contains more delicious fruit Meanwhile, at the same time, if we go to the supper market, there are lot of products which are seemingly not advertised at all The main reason of difference in two phenomenons is that the marketers are acting according to where the item is in its product lifecycle Once a product has been developed and tested, it goes to market There it may pass through a product life cycle of four stages: introduction, growth, maturity, and decline This cycle is a theoretical model of what happens to sales and profits for a product class over time However, Each product may has a different life cycle, and particular brands may act differently For example, while frozen foods as a generic class may go through the entire cycle Some product classes, such as washing machine, stay in the introductory stage for years Some products, like cooking oil, become classics and never experience decline Still others may be withdrawn from the market altogether Nonetheless, the product life cycle may provide some basis for determining revenue earned, contributing to strategic marketing planning Also, PLC may helps the firm to identify when a product needs support, redesign, reinvigorating, withdrawal, etc It may help in new product development planning and in forecasting and managing cash flow Let’s consider in detail PLC’s 4 stages which have its own characteristics The organizations are trying to manage the life cycle of their particular products: 7 Introduction Stage: This stage of the cycle could be the most expensive for a company launching a new product The size of the market for the product is small, which means sales are low, although they will be increasing On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch, such as the product Advertising and promotion campaigns, can be very high, especially if it’s a competitive sector Example for this stage is Holographic Projection: Only recently introduced into the market, holographic projection technology allows consumers to turn any flat surface into a touchscreen interface With a huge investment in research and development, and high prices that will only appeal to early adopters, this is another good example of the first stage of the cycle Growth Stage: The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase This makes it possible for businesses to invest more money in the promotional activity, such as to increase consumer awareness and monitor market – competitors reaction, to maximize the potential of this growth stage increased consumer awareness Tablet PCs is an example There are a growing number of tablet PCs for consumers to choose from, as this product passes through the Growth stage of the cycle and more competitors start to come into a market that really developed after the launch of Apple’s iPad Maturity Stage: During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage In this stage, sales reach peak, cost of supporting the product declines, ratio of revenue to cost high, sales growth likely to be low, market share may be high, competition likely to be greater, price elasticity of demand, monitor market – changes/ new strategies It is necessity to develop new strategies becomes more pressing: in searching out new markets, developing new uses, focus on adapting the product, re-packaging or format, improving the standard or 8 quality, developing the product range For instance, Laptop computers have been around for a number of years, but more advanced components, as well as diverse features that appeal to different segments of the market, will help to sustain this product as it passes through the Maturity stage Decline Stage: Eventually, the market for a product will start to shrink This shrinkage could be due to the market becoming saturated (i.e all the customers who will buy the product have already purchased it), or because the consumers are changeing to a different type of product While this decline may be inevitable, it may still be possible for companies to make some profit by changeing to less-expensive production methods and cheaper markets Typewriters are a product that is passing through the final stage of the product life cycle: Typewriters, and even electronic word processors, have very limited functionality With consumers demanding a lot more from the electronic equipment they buy For example: Many year ago, Black and white television had appeared, then color tivi had appeared and developed, Black & white TV was declined Plasma and LCD appeared more than ten years ago, thanks to the studies experience, they have changed, created & upgrated the technology (stereo, hifi, …) and until now the Color TV have continuously been developed in the electronic products market by using various marketing strategies in each stage to lengthen the product life cycles Most strategies are executed to counter to key moves and strategies of competitive companies Marketing strategy needs to know where the product currently stands, then only it can enable strategies to be made For example if a product is already in decline stage the strategies would be different from a product at introduction Therefore, we can say: “The Product Life Cycle (PLC) is a tool for marketing strategy” 4 Eluciate the statement “Advertising forces people to buy goods that they don’t want” The purpose of this part is to eluciate the question whether advertising forces people to buy goods that they don’t want We can argue that the behaviour of the people depends on the individual personality, economic condition and the way a company advertises their product and the discount offers given to the product Our point is, that there are various advertising techniques with various targets Another big question is how can we judge what 9 kind of goods and services are necessary, and which good is bought only to show-off among their friends and relatives? What is a need, and what is just a will? This paper will argue the manipulation via marketing exists and the advertisement is making us to buy things we do not actually need We would like to stress the importance of psychology which is considered as a key tool used by advertising companies Only via careful use of psychology are marketers able to create emotional advertisements that touches our minds, our senses and feelings that push us to buy things even if it is unnecessary We want to support the statement by using real examples, that are divided based on the common psychological effect or methods used to force people’s making decision Before discussing the main points, it is crucial to define and understand the meaning and the definitions of used terms: Phychological perspective and consumner: To define our perception consumer behavior, we have to think what can explain consumer’s behavior and how companies try to influence it Traditionally, there are four different theories around consumer behavior:(Consumer Behavior, 2010), including: (1) Psychological models, (2)Sociological models, (3) Economic models, (4) Stimulus respond models Therefore, we have to consider the psychological aspect to understand the problem Indeed, to show how consumers are persuaded by companies, we have to describe aspects below that can influence consumer’s mind We pay attention to motivation because it is the driving force of behavior and there must be a reason, a motive for purchasing, and using products Motivation can be described as the driving force within individuals that impels them to action The driving force is produced by a state of tension, which exists as a result of an unfulfilled need Individuals strive –both consciously and unconsciously – to reduce this tension through behaviour which they expect will fulfill their needs and thus relieve them of the stress they feel People experience wishes, desires and needs These can originate from unmet physical needs or from fantasy On this basis, we can assume that needs can be started by both internal and external forces Motivation is due to many factors, and motivational researchers try to identify and understand these factors Until now, there has been a tendency to focus on needs, and a popular approach has been to assume that people do not act of their 10 because marketers know their product and its features and benefits, each product or service is intended for particular segment or target group Moreover, the product is designed to satisfy particular needs There is an obvious objective behind these activities - to sell as much volume as possible To discuss the objection, we can divide consumers on easily influenced consumers and rational thinking consumers who will prove all received message We have to state that advertising techniques target on both groups It means that all consumers are exposed to advertisements that can lead consumer’s stimuli to buy goods they do not need The buying situation: Consumer’s purchase goes through different stages (Consumer Behavior, 2010): Problem recognition, Information search, Emergence and evaluation of alternatives, Purchase decision, Purchase, Post purchase evaluation At each stage, they have different motivation and reaction which can be different according to the kind of buying it is habitual, limited decision making, extensive decision making or impulse All these stage are opportunities for companies to convince, to influence and manipulate the customers For instance, manipulation is when advertisement changes a buying from a habitual one to an impulse one Indeed, in such kind of buying, each stage which is a time of reflection is shorted to push the consumer to purchase The classical example of impulse buying is Apple iOS App Store, where majority of applications are often priced below 3 USD, usually 0,99 This aggressive pricing makes us to do spontaneous buy so we do not care about the small amount of money spent Man can argue 0.99 is not a big deal, however, the whole App Store is a huge multi-billion dollar business To continue, we are going to present some techniques used by companies to show how companies and firms deal with all these psychological aspect to manipulate the client? This section contains 7 techniques which include: Salesman´s Techniques, Guerrilla Marketing, Psychological pricing, Dreams and Idols, The Bandwagon Effect, Code of advertising, Word of mouth marketing Let begin with Salesman’s Techniques: in this part, we focus on 3 techniques: Limited time offer, Buy one get one free and, Loyalty cards: 13 Limited time offer: It is the persuasive technique in advertisement that accelerate the customers purchase of particular product due to limited time for purchase The task is to frighten people, if the product is not bought before the end of the limited time offer, there is no other opportunity to purchase the product for lower price However it’s not common that the product in the camping is the cheapest on the market This is meant to put pressure on the customer by creating a sense of urgency that the deal is only available right now This forces the customer to make up his or her mind on the spot, rather than take the time to shop around and make an informed choice Buy one get one free: When the market is saturated it creates disadvantage for competitors It also cause ineffectiveness in consumption and increase revenues for sellers The psychology influence like “buy-one-get-one-free” is used in this sales promotion technique as well - for many consumers it is interesting and catchy if there is something free, they have feeling that this occasion will never happen again Loyalty cards: Loyalty cards are used widely in supermarkets and by retailers It is an key approach in marketing techniques which allows to collect important data about consumers and consequently find the best way how to create most attractive and catchy product offer On the other hand it can be consider as a part of positive relationship with customer There are numbers of similar shops offering identical portfolios of products However, for consumers it makes difference to get something extra (collect points, receive extra vouchers for birthday etc.) or just buy a product Most of the consumers will prefer supermarket where its possible to get something free and be part of the community For instance, Saigon Coop and Metro system are very sucsessful in applying Loyalty cards technique Guerrilla Marketing: According to Jay Conrad Levinson 1984, Guerrilla Marketing as a tool of achieving conventional goals, such as profits and joy, with unconventional methods to conduct trade promotion actions with inexpensive techniques Guerrilla Marketing is about attracting our attention differently than in traditional way It derives benefits from the moment of surprise and our astonishment Strangeness and innovation are also its key factors Guerrilla marketing is not purely based on any specified priciple Enterprises use 14 anything that they think is unique one, low cost and appropriate to business laws Guerrilla Marketing makes the viewer think that they are exploring a mystery Usually Guerrilla marketing campaigns are unexpected, possibly interactive and consumers are targeted in unforeseen places (general public, campuses, street marketing/giveaways, PR stunts, etc) Below are some awesome examples of Guerrilla marketing campaigns that will get your heads turning.The more creative Campaign is, the more the viewers pay attention to it One of the most unforgettable is to make viewers feel like they 're lucky to witness them Today, not only small businesses use guerrilla marketing, but top brands like Sony, Apple, Coca- Cola with Guerrilla marketing on a college campus in the United States by using coca-cola happiness machine, Adidas also choose this way of marketing In Vietnam, G7 instant coffee in branding campaigns agricultural, Tan Hiep Phat "first appeared in Vietnam" is a number examples of how guerrilla marketing Psychological pricing: The price is very important and key element of the marketing mix Pricing is a part of business strategy and can be based on different factors, for example profitability or market penetration, however price influences the character of promotion and can be a very efficient advertise That’s why it is efficient to ground it on psychological aspects Firms must offer their products for a price their target market is willing to pay There is still a question how do customers perceive the value of the product? Companies have to find a price that enables them to make a fair profit and seems fair to their customers Odd pricing: This is the very popular psychological pricing technique, to be honest it’s imposible if you’ve never seen this classic trick Prices ending in 9, 95, 97, 99 are sometimes called “charm prices” because they are used to give an illusion of value; to play less “that people are more likely to buy odd-priced items because the mere image of odd prices makes products seem less expensive (Schindelr, 1991) For example, if the price is $9.99 whereas another is $10, although the real difference is only one penny, but the fact the number 10 has two digits, we perceive its value as a lot higher than it really is Therefore, the consumer thinks they are receiving great savings by going for the $9.99 By doing so, you are telling customers that your product “it looks cheap” which equates to higher affordability anh that’s why they are more likely to 15 purchase This idea was used at the beginning of the 20th Century, but until now the impact is still very strong You might think that you made rational decision, in fact people make mentally influence decisions rather than completely rational decisions Because thoughts are partially made in an emotional sense Makerters have profitably used odd pricing to increase their sales Prestige pricing: From the psychology perspective, at the four level in Maslow hierarchy is human’s need for appreciation and respect Advertising companies apply this need in manipulating their customers Contrary to Odd pricing, the places where you should not make you product “look cheap” but “Expensive” is in the luxury industry such as automobiles, jewelery, cosmetics, car… Prestige pricing is one of the most commonly use pricing tactic in marketing It adjusts high price for a product or service in order to create an image of high quality Prestige pricing is useful for consumers who believe price and quality are related If the cost of your high end product is expensive, it won’t lower your sales but in fact engage more customers, because of thinking “ the more expensive, the more good products is” It’s not a secret that we pay the brand and not the quality To conclude, psychological pricing is very often used to manipulate us and we can’t ignore it Of course, everybody is not influenced by this technique but its efficiency is proved and that’s why firms use it Dreams and Idols: Companies are using customer’s dreams and wishes to manipulate them to buy goods and services From the psychology perspective, people want to be a members of any society or cultural groups Advertising companies are using that so in the advertising, they are picturing groups of either rich, famous, beautiful or talented people to enhance our need for social belongings Marketers have been using celebrities in commercials, print campaigns and promotions for years, because it just works Celebrities get the viewer’s attention; but whether they work to sell the product depends on proper celebrity casting The billions of dollars spent per year on celebrity endorsement contracts show that celebrities, like Cristiano Ronaldo, Megan Fox, Troy Polamalu and Tiger Woods, play an important role for the advertising industry Theory and practice prove that the use of super 16 stars in advertising generates a lot of publicity and attention from the public The underlying question is, if and how the lively interest of the public in ‘the rich and famous’ can be effectively used by companies to promote their brands and consequently increase revenues The Bandwagon Effect: The bandwagon effect is when people go along with what everyone else is doing This psychological phenomenon which is also called “cromo effect” or “social proof” means that the customer is willing to purchase one product which is purchased by others The reason can be various, this product can be modern and the customer wants this product just to “be in The bandwagon effect is used to create an illusion of popularity on a product that may have been or is about to be introduced into the market It feeds on the human emotion of, “if everyone has one, I want one too,” by making a certain product seem desirable by all If the bandwagon effect is executed effectively, the “illusionary” trend seems accepted by a majority of people and others will join in For example: Marketing campaigns of Samsung Electronics This company places new phone on market almost each month and promotes it in a modern and sometimes futuristic way, so it forces you change your “old” phone for a new one The technologies in cell phones also change rapidly than in computers so the customers just want to be in Customers change cell phone each 6 month to have the up-to date technology in their pocket, just in order to not be out Another real case which can be well manipulated by this effect is children market of LEGO or iPhone games Good example of this can be free samples of toys or ice cream in the TV advertisements on toys and games before the Christmas Especially children want to belong to the group of others and when the child sees particular product e.g LEGO or iPhone games in other child’s hand, it automatically want the product too and force the parents to buy it.We can say, that the bandwagon effect, when used wisely, can be very powerful tool to manipulate people to buy a product Code of advertising: Code of Advertising serves as a regulation factor Moreover, it protects consumers against deceptive advertising of advertising agencies Even that each country has its own regulations design for their competitive environment, there are some general conditions that must meet the requirements Responsible advertising practice should 17 include: decency, truthfulness , health claims, safety, children, environmental claims In general, there is code that regulates conditions of using advertisement and direct which practice are allowed and which are forbidden If we admit that the code is developed to protect consumers rights, we have to also admit that the advertising can influence consumers and manipulate with their decision making It means that advertising can have positive or negative effect on consumers perception Nevertheless, if forbidden practise are not applied, the impact of advertising is not maximise, therefore, allowed advertising practice cannot be harmful for consumers Word of mouth marketing: Before purchasing a product, service, the consumers often ask- consult for ideas of their relatives or friends At that moment, Word of mouth marketing has been “actived” In the context of modern marketing tools are so expensive now, every famous brands take full advantage of this tool Mouth marketing, also known as "rumors", as spontaneous forms of communication in human daily life Thanks to the rumors that have been handed down stories for generations Also thanks to rumors that a lot of lessons in life have been transmitted, this is also a benefit of rumors However, a question arises how much percent truth in the rumor? According to psychologist, people always like to cause "shock " for others inorder to creating their attention, so by the story travels often "more sauce, add salt " on , and so on, through as many intermediate, rumors as to lead people away from reality, sometimes causing major consequences that the media did not imagine, because they really did not mean to Development of marketing science to the 70s of the twentieth century became complete theoretical system Word of mouth marketing is considered as an technique which is used to support other tools in marketing product to consumers by the power of spreading By the late '90s, the internet revolution has made certain achievements, the spread of information becomes ever more favorable by the explosion of social networks, and each can have their own individual "newspaper" by tools such as Blog, Facebook, Twitter Now word of mouth marketing to promote more effective To facilitate communication support, word of mouth marketing requires a Information Management and more professional Summary: Based on studying customer’s behaviours, understanding of techniques to manipulate with consumers minds and change the way of thinking and purchasing the 18 products, supported by real examples the paper have elucidated the statement: “Advertising forces people to buy goods that they do not want" Most of us are suggestible and psychology techniques in marketing are really powerful tool to manipulate customer, to change their needs Based on the fact of growing knowledge of psychology, some of the methods are so powerful that have to be regulated Traditional ways of advertising, such as psychological pricing, various sales techniques, and new methods of advertisements, such as usage of social networks, guerrilla marketing and others are nowadays able to adjust the advertisements to fit to expected needs and manipulate with specially targeted groups There are also other factors, for example different personal purchasing behaviour and different perceiving external stimuli that does not straight the process On the contrary they make the advertisement techniques more inspiring and creative Companies are maximizing their profits and they will do the best to sell their products More investments will go to the development of new approaches in psychology as the most important tool to increase sales Nevertheless, a proper manipulation by advertisement and others will create needs that could have the disposition of survival needs that are definitely included in our rational thinking Finally interaction between psychology and advertisement are apparent However psychology without advertisement is something obvious, advertisement without psychology is not possible 5 The process of intergrated Marketing communication (IMC) The process of intergrated Marketing communication (IMC) can be Explained by the organization chart below: 19 IMC Commmunication Tools Advertising Direct Marketing Interactive/Internet Maketing Sales Promotion Pupblicity/Public Personnal Selling Relations ( Adapted: https://www.google.com.vn/IMC communication tools) The IMC process generally begins with an integrated marketing communications plan describing the different types of marketing, advertising, and sales tools to be used during campaigns These are largely promotional tools, which include everything from search engine optimization (SEO) tactics and banner advertisements, to webinars and blogs Traditional marketing communication elements such as newspapers, billboards, and magazines may also be used to inform and persuade consumers Marketers must also decide on the appropriate combination of traditional and digital communications for their target audience to build a strong brand-consumer relationship Regardless of the brand's promotional mix, it is important that marketers ensure their messaging is consistent and credible across all communication channels Let’s considering some following definitions which are included in IMC: Advertising: According to Kotler’s and Armstrong’s (Kotler, 2001) definition: "Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsorr” Advertising plays an very important role in IMC, but every thing has both two sides, let find out about Advantage and disadvantage of Advertising In positive side, 20